The interaction of an HVDC converter with the connected power system is of complex nature. An accurate model of the converter is required to study these interactions. The use of analytical small-signal converter models provides useful insight and understanding of the interaction of the HVDC system and the connected system components. In this thesis analytical models of the HVDC converters are developed in the frequency-domain by calculating different transfer functions for small superimposed oscillations of voltage, current, and control signals. The objective is to study the dynamic proprieties of the combined AC-DC interaction and the interaction between different HVDC converters with small signal analysis. It is well known that the classical Bode/Nyquist/Nichols control theory provides a good tool for this purpose if transfer functions that thoroughly describe the 'plant' or the 'process' are available. Thus, there is a need for such a frequency-domain model. Experience and theoretical calculation have shown that voltage/power stability is a very important issue for an HVDC transmission link based on conventional line-commutated thyristor-controlled converters connected to an AC system with low short circuit capacity. The lower the short circuit capacity of the connected AC system as compared with the power rating of the HVDC converter, the more problems related to voltage/power stability are expected. Low-order harmonic resonance is another issue of concern when line-commutated HVDC converters are connected to a weak AC system. This resonance appears due to the presence of filters and shunt capacitors together with the AC network impedance. With a weak AC system connected to the HVDC converter, the system impedances interact through the converter and create resonances on both the AC- and DC-sides of the converter. In general, these resonance conditions may impose limitations on the design of the HVDC controllers. In order to improve the performance of the HVDC transmission system when it is connected to a weak AC system network, a reactive compensator with a voltage source converter has been closely connected to the inverter bus. In this thesis it is shown that the voltage source converter, with an appropriate control strategy, will behave like a rotating synchronous condenser and can be used in a similar way for the dynamic compensation of power transmission systems, providing voltage support and increasing the transient stability of the converter. / QC 20100708